BOC Minutes: A long trade conflict with US would permanently cut level of GDP

• Even if no tariffs imposed, a long period of uncertainty would almost certainly damage business investment
• 25 bps cut would help support growth and better balance inflation risks
• Uncertainty due to US tariffs also supported case for a cut
• Tariffs would likely represent a one-time increase int he level of prices, saw risk of higher import prices feeding into other prices
• In setting mon pol, they plan to continually assess trade conflict

No surprises here but there is more of an emphasis on trade than I would have expected.

This article was written by Adam Button at www.forexlive.com.